I was a kid in San Diego in the late 60s, and I heard "groovy" but not as often as TV or the movies about that time frame would have you think it was said.
I grew up during the 1960's and 70's, in a midwestern city with a large university close by. The only time I ever heard the word "groovy" was on
The Brady Bunch and
The Partridge Family. Oh, and in the
Dick Tracy comic strip. They had a young rookie officer named Groovy Grove.
High school students started using the word again during the late 1980's, about the time Phil Collins recorded his cover of "Groovy Kind of Love".
I still like to address my wife as "groovy chick"...as in "Hey there, groovy chick, you're really hip in a happenin' way!"