Well to be honest at 16 months severe and mild autism look identical (not to alarm you, just to say that it's not worth getting hung up on position on spectrum etc and what age it can be diagnosed- a specialist can diagnose before 2).
I'd certainly give it a few months and it's good she's watching, but if he's still 'failing' CHAT at 18/19 months then I would push for a referral to a specialist. Non-specialists have very odd ideas about what autism is (I think they assume it means a child rocking in the corner staring at a wall). And depending on your area waiting lists can be very long. We were lucky and moved from London, but to give you our timeline:
20 months I raised concerns with HV. She agreed to refer to specialist (autism) SALT
26 moths he was seen by specialist SALT who said he 'definitely wasn't' autistic and if he had any problems at all they were very mild. She decided not to send us on a Hanen course but to review 'in 3 months'
3 month reviews didn't exist - so we waited 9 months to see a community (non-specialist ) SALT who didn't have a clue what to do with him but said he needed a referral to the complex communication disorder team and that the waiting list was at least 2 YEARS!
We moved from London to Devon, where they were horrified that he hadn't been seen so leapfrogged the waiting list to a multi disciplinary assessment and he was dxed with 'somewhere on the autistic spectrum' aged 3.
That dx has since changed to severe autism.
All that just to say trust your gut. I did have concerns about ds3 aged 16 months but I was fairly certain he was fine by 18 months. With ds1 when I was told he was fine I was happy for about 2 days then I just though 'hmmm maybe not' and I wish I'd pushed more.
But tbh whether he has problems or not (and he may well not of course) Floortime is good to do anyway. And if he does have problems doing something is more important than worrying about a diagnosis. Floortime uses a functional assessment so it doesn't worry about a condition's name, just what a child can do.
I'd also recommend BabyTalk by Sally Ward. A very useable book with lots of ideas. I used it a lot during that ridiculous wait we had. It's written to encourage typical development but is all good for children with communication difficulties too.