People have collectively stopped believing in the supernatural?!? Seriously? I hadn't heard this. It is exciting news, and I, too, want to know when this happened.

Everything I have seen indicates that belief in the supernatural is alive and well. The subjects have changed. The beliefs have changed (though not as much as one might think), but the assumption that the extraordinary exists seems alive and well from my point of view.

The modern western world retains strong beliefs in angels and ghosts. Extraterrestrials are assumed by many to be visiting earth. They are certainly extraordinary and tales of their visits (and abductions) echo earlier stories of fairies and elves. In fact, belief in extraterrestrials is so strong among many that to refer to them as "the supernatural" can inspire a firestorm of angry response, demonstrating the strength of that tradition.

A few months ago someone asked much the same question about when magic died, and the answer is easily amended to suit your question:

The problem with assessing belief and what we might regard as magical practices is that it is a lot easier to recognize these in other people. We tend to regard other people's beliefs and practices as superstitious, while ours are "just the things we do." Similarly a tongue-in-cheek definition of mythology can be "other people's religion."

There also appears to be a tendency for people to regard previous generations as being more "superstitious" with lives entwined in belief and magic. This is a way of patting ourselves on the back and to look back with a certain amount of gloating to declare ourselves as "modern" and sophisticated as opposed to earlier "simple" generations.

There has long been a perception that "our current time" (whenever that is) is less superstitious and gullible/believing than the previous generations. This perception is documented in Chaucer's writings, for example. The following is an excerpt from my recent The Folklore of Cornwall: The Oral Tradition of a Celtic Nation (2018):

There is evidence that people have always thought their beliefs in the supernatural were fading and that earlier generations were more fervent in their fairy faith. Asserting that a belief in these entities was a bygone facet of English heritage features in Chaucer’s fourteenth-century introduction to ‘The Wife of Bath’s Tale’, which the character sets ‘In the olden days of King Arthur [when] … all this land was filled with faerie’. The Wife of Bath adds, ‘This was the old belief’. It is a theme that appears to have resonated over the centuries with a repeated assertion that people regarded those from previous centuries to have possessed a stronger faith in the existence of a fairy world. Writing in 1997, Linda-May Ballard cites Jeremiah Curtin as describing the idea of a waning belief in the fairies in his 1895 publication on Irish folklore. Ballard then poses the question, ‘Might it be that the idea that fairy belief is fading and belongs to the past, is part’ of the wider tradition embracing the belief in these supernatural beings? (sources: John H. Fisher, editor, The Complete Poetry and Prose of Geoffrey Chaucer (New York: Holt, Rinehardt and Winston, 1977), p. 120; Linda-May Ballard, ‘Fairies and the Supernatural on Reachrai’, in Narváez, The Good People, p. 91; note 9)

Although not specifically from Cornwall, Seeing Fairies: From the Lost Archives of the Fairy Investigation Society, Authentic Reports of Fairies in Modern Times, provides evidence of British tradition enduring into at least the mid-twentieth century. Modernism affected but did not extinguish fairy traditions. A Cornish example from 2017 reinforces the idea that while folklore may change, aspects of belief can defy intuition by lingering over time. The Packet, a newspaper serving Falmouth and Penryn in Cornwall, reported the one-hundredth birthday of Falmouth native Molly Tidmarsh. The centenarian implied that some of her good fortune in living so long may have been due to her birth under a ‘piskie ball’, a round lump of clay, fired together with one of the tiles used on the roof ridgeline of her family’s home and business. Molly suggested that these objects were created to distract piskies who sought to come down the chimney to cause mischief for the occupants of the house. Instead, the piskie ball would entrance them, and they would dance around it until dawn, at which point they would disappear. It is unclear, and largely unimportant, if Molly Tidmarsh believed good luck was hers because she was born under the ball; what matters here is that piskies featured in a newspaper article in 2017 without a need to explain what they were. Molly remembered a tradition of the early twentieth century and it still resonated with readers one hundred years later. (sources: Marjorie T. Johnson, Seeing Fairies: From the Lost Archives of the Fairy Investigation Society, Authentic Reports of Fairies in Modern Times (San Antonio, Texas: Anomalist Books, 2014); The Packet, 22 August 2017).

This is a limited amount of evidence, but it points to something that is an irresistible truth about folklore: everyone has it and it is not something that is shed with any "sophistication" of modernism. There is no set time when disbelief became prevalent although it has always been believed to be "the previous generation." One can argue that the time of disbelief has yet to be attained (and likely never will) since every generation attaches itself to some belief structure.