I think I read something about an upcoming patch that will open up more space on Ocllo island for housing.
I have a small house by the bridge. It isn't by town but still see's a lot of traffic. It is a great house for training provoke on sailors as well. Let me know if you're interested!
I have six houses on Ocllo. The only one I'd sell for a fair price is the small tower to the far southeast. Any of the smalls, including the small workshops fit that spot. For an unfair price, I'd sell the village by the lake. I've had good results with my vendor there but I haven't been keeping him well stocked lately. Ocllo being a newbie area, you can unload guarding armor and have it actually be of value to the buyer. The profits aren't huge, but they're steady.
There was an announcement about land opening up in Ocllo but if you want a guaranteed spot I decided to sell mine: http://www.uorforum.com/threads/ocllo-guard-zone-s-tower-seconds-from-bank.4658/