At Character LimitBy
“At Character Limit” ! If you see this message, you have reached the maximum number of characters that can live in your village. The Smurfs and the roaming critters (i.e. the snail and the caterpillar) count as characters, the stationary Smurfs and the stationary animals (for example the butterflies) do not count for the character limit.
The maximum of characters available is 250. If you have reached this number, building or upgrading a house will not add a new Smurf to your village and you cannot buy a new roaming critter or animal. Because the snails, caterpillars and the Smurfs cannot be deleted at the moment, there is nothing you can do to get rid of that message.
The creators of the game have stated that increasing the character limit is, at the moment, not an option due to the limited memory resources the mobile devices, especially the older devices, offer.
They are, however, thinking of a way to make it possible to remove roaming critters so that new Smurfs can be added. There has not been given any timeframe for that, so it is not expected in the next couple of updates and might take a while until that will be possible. This has now been implemented in the form of critter storage.
On the space area, i.e. the Swoof Planet, the character limit works a bit different. As Swoofs are needed to expand the area further, half of the limit (that is 125 characters) are reserved for the Swoofs. That means there are 125 characters left for the Smurfs and the creatures that hatch from mystery eggs combined.